I think a good portion of these GenZs fear the responsibility of home ownership.
I rented until I could save up enough for a 20% down payment, and then I bought something. It was a condo unit and not a single-family home, but it was a start at accumulating equity that I could roll over into something better in the future.
Over the years my salary increased, my equity increased, and then I sold the condo and bought a home.
That's how it's done, but it takes a vision after college and the discipline to make it happen.
Also, one can accelerate the process by getting married and having dual incomes, one to pay the bills and the other to save for the down payment.
-PJ
When I want investing and financial advice….I always go to generation Z.
Will they say that when they reach their sixties and ae still throwing that money down a rabbit hole with nothing to show for it?
I’m 76, and never owned a home. Raised my two sons alone, and back then, the only option was to rent. Couldn’t afford a down payment, or maintenance fees to fix anything that broke. Glad I never fell into that trap. Brand new loft apartments were built just down the street from me on ground that used to be a part of Griffiss Air Force Base. Rents start at $1500. No thanks. Been at my current abode since 1998. I wouldn’t dare tell you what my rent is, because you’d think I lived in the slums...but I don’t. The landlord who owns this complex and many other properties in the area, is just good to the seniors who rent from them. I’d be nuts to move from here, so they’ll have to carry me out. The other reason I’m glad that at my age, I don’t own a home, is that when I die, my sons won’t have to get rid of a home neither wants to live in.
If you plan on moving every few years, renting is probably better. Selling a house will take 10% off the top each sale just in transaction costs.
I can’t imagine ever wanting to rent. What a soul-crushing way to live. I like waking up in my bedroom every morning, not some else’s.
I know a young couple who would like to buy a house but can’t afford to.
Young people roam to try and find a place to rent that they can afford.
GenZ is between 11 and 26 years old
Renting makes sense here.
My kids don’t.
My son has a house that God really provide for him, and my daughter wants one so bad she can taste it. We’re praying for God to provide one.
I’m sensing buy-in for the great reset premise: “You’ll own nothing, and love it.”
No responsibility.
of course they say that when the cost of a home is so high
Even owning is renting, when the government charges you 2% property taxes, it means the land is actually owned by the government, you’re paying rent for the right to use the land.
That is moronic. A home is a much better place for your money. Fools.
A higher percentage of Chinese own their homes than Americans.
Their living standards are also rising while ours are falling.
Herr’s the state of the market in CT. It’s no surprise that this is out of reach for most Gen Z:
Took 65 years, but closed on a house last week together with my daughter. 100 years old, in the hood, solid with nice wood.
In the past 2-3 years a fake 20-40% increase in home values, which are not warranted, along with 7-8% interest rate? Who is gonna take that deal. Thats what these kids are looking at.
Black Rock, Invitation Homes, and other financial behemoths began buying up single family homes around 2010.
That’s where the full cash offers above market driving the California market have come from. It’s been spreading around the country since then.
Some of these funds are rumored to be fronting for China’s sovereign wealth fund. That’s who young American buyers are competing against and they haven’t got a prayer.